The Cyborg Stables C-21 & B-21 rounds will start Friday, 10/21/22, at 8PM UTC. In this round, we’ll introduce a new major feature for our layered farming platform: the burn malus. Besides the burn malus, this round is similar to the previous one for C-20/B-20 so today’s article will be focused on the new malus mechanism. Check out the previous token layer article for info you might want on tokenomics, etc… as the C/B-21 layer will be the same except for the new malus : https://cyborgswap.medium.com/the-cyborg-stables-c-20-b-20-round-b64ad5d453f
The burn malus is designed to reduce the C-21 & B-21 volatility and deflation. It works by targeting early withdrawals. Once you stake in a Pool or Farm for C-21 or B-21, a countdown begins. If you harvest your rewards during this countdown there will be a penalty between 0–100% depending on when you harvest. All penalty tokens are instantly burned from the supply. The malus will be reduced by 1% every 2 hours. For example, if you harvested your rewards after 2 hours, 99% of your rewards would be burned. After 4 hours, 98% of your rewards would be burned and you would get 2% of your pending harvest.
Basically, if you want to get 100% of your rewards, you’ll have to wait 200 hours (roughly 8 days). This mechanism’s goal is to help the C-21 & B-21 price action by assisting in preventing massive sell-offs from the beginning, which we all know tends to happen with layered farming. However, layered farming always remains very risky and only designed for users who are well educated in ALL the risks associated with this unique, fast-paced manner of crypto speculation! Anyone engaging with it should « DYOR » and completely comprehend the mechanisms and the risks involved. Of course, you can always reach out to us on Discord or Telegram with questions you may have on the process and we’d be happy to help make sure you understand everything.
All that aside, we do believe that this new burn malus feature for C-21 & B-21 will be a real improvement over the previous rounds. As always, the Cyborg Corp. team keeps building during the bear market in order to offer our community more novelty. The NFC platform should also be released in a couple weeks, so be ready Cyborgs, more articles are on the way!